More Than Half The World Now Lives In Cities

This is according to a report recently released by the United Nations.

Managing urban areas has become one of the most important development challenges of the 21st century.

The report notes that in 1990, there were ten “mega-cities” with 10 million inhabitants or more, which were home to 153 million people or slightly less than seven per cent of the global urban population at that time.

In 2014, there are 28 mega-cities worldwide, home to 453 million people or about 12 percent of the world’s urban dwellers. Of today’s 28 mega-cities, sixteen are located in Asia, four in Latin America, three each in Africa and Europe, and two in Northern America.

Today
Tokyo remains the world’s largest city with 38 million inhabitants, followed by Delhi with 25 million, Shanghai with 23 million, and Mexico City, Mumbai and São Paulo, each with around 21 million inhabitants. Osaka has just over 20 million, followed by Beijing with slightly less than 20 million. The New York-Newark area and Cairo complete the top ten most populous urban areas with around 18.5 million inhabitants each.
By 2030, the world is projected to have 41 mega-cities with 10 million inhabitants or more.

Tokyo will still be largest city in 2030

2030 Projections
Although Tokyo’s population is projected to decline, it will remain the world’s largest city in 2030 with 37 million inhabitants, followed closely by Delhi, whose population is projected to rise swiftly to 36 million in 2030. While Osaka and New York-Newark were the world’s second and third largest urban areas in 1990, by 2030 they are projected to fall in rank to the 13th and 14th positions, respectively, as mega-cities in developing countries become more prominent.

By 2050, the vast majority of the world’s megacities will be in Asia.

What about Singapore? 
Well, we should think about the future of Singapore.  When the Government put out that infamous White Paper of 6million population, the local people screamed and yelled.  But just look at the world around us. Mega-cities are growing rapidly and many more big cities are coming online.

Do we need to become a mega-city as well?  Is there some magic in the 10 million number that gives a mega-city its edge?   The current top global cities in the world like New York and London are also very large.

Since Singapore is such a great place to be in, maybe we should just ramp up infrastructure in a huge way and hope that more people will come here to work and play.

Do not forget that in this world of 7, 8 or 9 billion people as well as many large, huge and mega-cities, even staying relevant would become a challenge to our little red dot.

Happy Investing!

Naked Selfies Found On "Factory Reset" Phones

Be warned.  Actually, this is not new.  Techie friends have long warned me that the data on the phone can be easily retrieved, even after you have done a factory reset.  And, even if you use a more sophisticated program to wipe the data off your phone, it can still be retrieved, as long as the forensics person has more sophisticated tools.  

The article below implies that iOS is more secure.  The article in the Guardian explains this a bit further.  I quote - "Apple's iPhones and iPads encrypt their data using the AES 256 algorithm, with a software key that is generated using information from the user. When the owner chooses to "erase all content and settings" to wipe an iPhone or iPad, the cryptographic key is deleted - meaning that although the data remains on the phone, it is encrypted beyond any capability to decode it."

Does this mean that the data on iOS is more secured?  I am not entirely convinced.  Therefore, the only logical conclusion is this. The only way to completely destroy data is to destroy your phone.  

This article was also carried on the BBC here - http://www.bbc.com/news/technology-28264446

The Guardian newspaper article is here -http://www.theguardian.com/technology/2014/jul/11/factory-wipe-on-android-phones-left-naked-selfie-photos-and-worse-researchers-find

These days, so many people buy new phones every year and sell back their old ones to a second hand retailers.  I just shudder to think how much personal data is lurking around out there.

Happy Reading!

DPM Tharman - Singapore Property Crash Not Likely But Further Correction Will Not Be Unexpected

"Not likely", said DPM Tharman who is also Singapore Finance Minister.

Mr Tharman was being interviewed by DBS CEO at the anunal DBS Asian Insights conference.

However, Mr Tharman also said that "a further correction will not be unexpected."

So, what is a crash and what is a correction?
My own guess.  Crash is 30% or more.  Correction is up to 30%.

Happy Investing!

High Speed Rail - Singapore to Malaysia - Stations

The proposed stops for KL-Singapore high-speed rail has been unveiled.

The stops are Nusajaya, Batu Pahat, Muar, Ayer Keroh, Seremban and KL.
The entire journey from Singapore to KL is expected to take about 2.5 hours.

I'm glad that this project is making progress.  I think this rail would be very good for both countries.

Here is a closer look at where the stations would be located.  The exact locations of the stations are not known yet.  Is it time to buy properties near the stations?

Happy Investing!!

Kwek Leng Beng - Right Time To Review Cooling Measures - Really?

So, property tycoon Kwek Leng Beng thinks it is time to review cooling measures.  Why?  Let's take a look at his arguments.  But before that, who is Kwek Leng Beng?

He is a property tycoon.  I quote some background information from wiki:

Kwek Leng Beng (Chinese: 郭令明; Pe̍h-ōe-jī: Koeh Lēng-bêng; born 1942) is a Singapore businessman. In 2009, Forbes estimated his net worth to be US$1.2 billion.  Kwek's father started off penniless, but subsequently founded Hong Leong group, essentially a rags-to-riches story.

Kwek Leng Beng was trained as lawyer in London, but chose to join the family business in the early 1960s. He became chairman in 1990 and went on to establish an international reputation for his leadership of the Hong Leong Group, which is now a conglomerate with more than 300 companies, including 12 listed ones. 

Kwek is the Chairman of City Developments Limited (CDL), an international property and hotel conglomerate and the leading real estate developer in Singapore. It operates in 20 countries in Asia, Europe, North America and Australasia. The CDL Group has over 250 subsidiaries and associated companies including 8 companies listed on the stock exchanges of Singapore, London, Hong Kong, Amsterdam, New Zealand and Manila. CDL has a market capitalization of US$5.8 billion and ranks just outside Singapore's top 10 listed companies. It is also the second-biggest property developer in Southeast Asia.

Wow.  Impressive.  CDL is a company with global operations.  So, obviously, Kwek's words carry weight. So let's take a closer look.

His key argument - Singapore would lose our edge as an investment destination unless Government reviews cooling measures.  As evidence, Kwek noted that foreigners have been ploughing their investment dollars in Britain, US, Australia over Singapore. Even Singaporeans have been investing abroad. (hey, this blog is about investing in London properties!)  Therefore, we need to review, presumably to attract these investments back.

What is the problem with this argument?  I believe Kwek was just referring to investments in the property sector, e.g. foreigners buying homes and other properties in Singapore.  In recent times, there is no doubt that London, for example, may have looked more attractive than Singapore as an international investment destination for residential properties.

But, has Kwek addressed the bigger picture?  How would a reduction in foreigners buying residential property in Singapore make us lose our edge?  What about the other types of Foreign Direct Investments in Singapore, e.g. new high-tech manufacturing plants, company HQs, R&D centres and similar investments that create jobs and bring higher value add to Singapore?  Have these gone down?  I don't think so.

In fact, one can make the opposite argument.  If Singapore does not rein in our property prices,  these higher value-add investments would NOT come to Singapore simply because costs are too high!  Imagine a global MNC thinking of setting up a HQ in Singapore.  Office space rental is one cost.  Re-location costs for their expats to Singapore is another cost.  If rentals for commercial and residential property are sky-high, how would that impact our competitiveness?  If land costs were so expensive, would Rolls Royce open a multi-billion dollar factory here?

The Duke and Duchess of Cambridge visited  the Rolls Royce Factory in Singapore

Perhaps Mr Kwek ought to consider these factors before making such sweeping and alarmist statements. We argue base on evidence.  Show us the evidence that Singapore has been losing precious investment dollars in high value add industries, then we will take such statements more seriously.

Otherwise, they all seem a tad too self-serving.

I'm glad that Government has come out to state that Cooling Measures will stay, for now.

Thanks for reading.  All views are mine.  Any factual errors, I stand corrected.

Please leave a comment on our community forum here.

Too Early To Relax Cooling Measures (MND Singapore) (1st July)

Too early, says the Government.  And I agree.  The prices are still rather high and sticky downwards.

Developers have very deep pockets and they can hold on to all the unsold units.

I agree with Ms Christine Li (research head of Property Agency, Orange Tee) and she was quoted in the article below.  I reproduce the quote:

"Four years ago, mass market units were about $700 to $800 psf.  Now, the more attractively priced units are already nearing $1,000 psf.... I think upgraders from Housing Development Board flats in particular will still prefer a steeper price correction."

Singapore Home Prices Seen Dipping Further for Rest of 2014 (2nd July BT Article)

Article in the local press - Singapore home prices seen dipping further for rest of 2014.

The official private home prices index has shed 3.2% in three straight quarters, after peaking in Q3 last year. Property consultants expect a moderate price erosion.

Well, look at it another way, the property market looks to be very robust.  Despite all the cooling measures, TDSR, the drop has only been 3.2%.   While some influential market players like Kwek Leng Beng have urged Government to review the cooling measures, I am glad that Government has come out to say that the measures will stay, for now.  Come on, only 3.2% drop and you want to review?